British investors looking towards Spanish property
Spain is starting to attract more attention from foreign property investors in the UK, an expert has noted.
According to Les Calvert, director at Property-Abroad.com, interest in the European country has been picking up in the last few months.
This, he said, is because British buyers are becoming increasingly keen to see how much they can get in the eurozone country with their pounds.
"The general interest is still there and growing, but people have been unwilling to take that actual final step and buy, because of the fear of buying on a downward trend," Mr Calvert commented.
However, he noted that many of those who are looking towards Spain have been put off making actual transactions because they are waiting to see when the property market bottoms out.
Mr Calvert said investors have found it difficult to decide whether this has already happened or if it will take place in the future.
This means that prices are continuing to drop, since not enough people are buying property and therefore supporting the market.
"They are a still a little bit twitchy about as to when to take that leap," he observed.
Mr Calvert stated that nobody wants to invest in a market which is still in decline, as they want to enter while it is at its lowest point so they can benefit from the subsequent growth.
He added that property values in the country are likely to keep falling until conditions start to improve, as this could inject some "real common confidence in the Spanish market".
According to figures from Tinsa, real estate prices in July 2012 were 11.2 per cent lower than they had been a year earlier. Much of this was driven by a 14 per cent decline in prices in the Canary Islands and the Balearics – as this was the biggest drop throughout this period.